Florida and Oregon – December 1, 2023 – Berkadia Seniors Housing & Healthcare recently announced the closing of four loans totaling $56.6 million in volume through HUD’s 232/223f program all of which achieved the program’s maximum loan term of 35 years.
“It has been an extremely volatile interest rate environment. With cash flows still rebounding from the pandemic, many deals are currently debt service limited,” said Muth. “As a result, movement in rates has a significant impact on loan proceeds. It was imperative that we overcommunicate with our borrowers, underwriters, and capital markets desk to ensure that we could meet and/or exceed our borrower’s expectations.”
Managing Director Ed Williams of Berkadia Seniors Housing & Healthcare closed a $14.5 million 232/223f HUD loan secured by a 139-bed skilled nursing facility located in South Florida for a repeat Florida-based client. The loan refinanced a bridge loan Williams placed in 2019 and a subsequent cash-out, borrow-up originated by the senior lender in August of 2022. Berkadia was able to close the HUD refinance 13-months from the borrow-up by qualifying the project under HUD’s reduced seasoning guidelines. The community appraised for $164,000 per bed and was 98 percent occupied at the time of closing. The deal closed on September 27.
Managing Director Steven Muth of Berkadia Seniors Housing & Healthcare closed an $11.9 million 232/223f HUD loan for a 44-unit/84-bed stand-alone Memory Care Community. The community was built in 2011 and is located in Southern Oregon. The property had an underwritten occupancy of 92 percent and the 76.8 percent LTV loan refinanced senior debt and related party debt. The deal closed on September 28.
In October, Williams closed another 232/223f HUD loan in the amount of $12.5 million secured by a 120-bed Skilled Nursing Facility located in South Florida for the same repeat client. The 80 percent LTV loan retired existing Berkadia bridge debt used to acquire the community as part of a larger portfolio. The community had an underwritten occupancy of 94 percent.
In mid-November, Muth and Williams teamed up to provide a $17.6 million HUD 232/223f loan for a senior housing community located in Northwest Oregon. The 69-unit, 98-bed community opened in late 2019. The property was 98 percent occupied at the time of closing and appraised at $423,000 per unit and $300,000 per bed. The HUD loan refinanced bank debt.
Berkadia’s Seniors Housing & Healthcare group leads the industry in innovative and comprehensive solutions for even the most complex independent living, assisted living, memory care and skilled nursing projects across the country. In addition to deep market knowledge, the group offers a full set of advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
To learn more about Berkadia, please visit www.berkadia.com.
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